A total of 750 companies failed to submit annual returns (AR) on the online registration system in June 2023, MyCO, according to the Directorate of Investment and Company Administration (DICA).
The DICA has notified any registered company which fails to file its AR on MyCO is to be struck off the register from the date of the directive, under 430 (F) of Myanmar Companies Law, according to the DICA’s notification.
Five hundred companies in January, 400 each in February and March, 200 in April and 550 in May did not file the AR on the MyCO. In the first five months this year, 2,050 companies failed to file AR, totalling 2,800 companies in the H1 this year.
Additionally, a total of 5,000 companies failed to submit AR in 2022, the DICA stated.
The registration and re-registration of companies on the MyCO website commenced on 1 August 2018, in keeping with the Myanmar Companies Law 2017.
All registered companies need to submit AR on the MyCO registry system within two months of incorporation, and at least once every year (not later than one month after the anniversary of the incorporation), according to Section 97 of the law.
According to Section 266 (A) of the Myanmar Companies Law 2017, public companies shall submit annual returns and financial statements (G-5) simultaneously. All overseas corporations must submit ARs in the prescribed format on MyCO within 28 days of the financial year ending, as per Section 53 (A-1) of the Myanmar Companies Law 2017.
As per DICA’s report, thousands of companies were suspended for failing to submit AR forms before the due date. Newly established companies are required to submit ARs within two months of incorporation or face a fine of K100,000 for filing late returns.
The DICA has notified that any company which fails to submit its AR within 13 months will be notified of its suspension (I- 9A). If it fails to submit the AR within 28 days of receiving the notice, the system will show the company’s status as suspended. Companies can restore their status only after shelling out a fine of K50,000 for the AR fee, K100,000 for restoration of the company on the Register, and K100,000 for late filing of documents, totalling K250,000.
If a company fails to restore its status within six months of suspension, the registrar will strike its name off the register, according to the DICA notice. — NN/EM